The Federal Reserve (Fed) Just Hiked Interest Rates Again!

U.S. Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC), July 27, 2022 in Washington, DC. The Fed raised interest rates by three quarters of a percentage point in its fourth rate hike this year.

The Federal Reserve just increased its target federal funds rate to 2.25-2.50%. As rate hikes continue experts say now is the time to make sure your money is in the right place to reach your savings goals — especially amid inflationary pressure and growing uncertainty.

This week’s increase marks the fourth interest rate increase this year, as the Fed works to temper runaway inflation rates, and a three-quarter percent jump from last month’s interest rate hike. Coming from pandemic-era lows near zero, the Fed’s latest decision makes for a total 2.25% increase since the start of this year. 

And there are likely higher rates to come — in a statement, the Fed indicated it “anticipates ongoing increases in the target range will be appropriate” to achieve its goals of lower inflation and maximum employment.

As higher interest rates are making mortgages, credit card payments, and loan debt more expensive for homebuyers and borrowers, they’re also driving up earnings for savers. Right now, the best high yield savings account rates are approaching 2% APY and the best certificates of deposit earn upwards of 3% APY. 

Here’s what else you need to know about this week’s interest rate hike, and why experts say now is the time to choose a bank that can best help you reach your financial goals:

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